(The following story by Michele Linck appeared on the Sioux City Journal website on April 13, 2009.)
PIERRE, S.D. — Gov. Mike Rounds has authorized the state Transportation Department to enter into agreements to fund $10.7 million in improvements on three state-owned railroad lines, including the one from Canton to Elk Point, S.D.
The cost of the improvements would be repaid by a $20 per car surcharge on freight hauled on the lines. Although essentially loans, repayment is based on the number of rail cars moving on the lines. No interest will be charged.
“The goal for these projects is to improve safety, reduce shipping costs and make the state-owned lines more attractive to industries that need rail access,” Rounds said. “This also allows new industries to locate on our lines, creating economic expansion and jobs.”
The proposed agreements will be offered to the regional railroad authorities that lease the lines from the state, said Bruce Lindholm, program manager in the state Transportation Department’s Office of Local Transportation Programs.
The Canton-to-Elk Point project, estimated at $7.6 million, would improve a portion of the 67-mile-long line. It is projected to take 60 days to complete. That state line is leased to Sioux Valley Regional Railroad Authority.
Another project, estimated at $1.07 million, would improve the Huron-to-Yale line, which is 15 miles long. This line is leased from the state by the East Central Regional Railroad Authority.
The third project, estimated at $2 million, would improve the Britton line from Aberdeen to Geneseo Junction. The line is 76 miles long and is leased to the Marshall County Regional Railroad Authority.